Why Shares of Kraton Are Climbing Today
Shares of Kraton (NYSE: KRA) traded up more than 20% on Thursday after the specialty polymers manufacturer reported earnings that came in significantly better than expected. As of mid-March, Kraton was down more than 75% year to date, but investors of late have been giving the company a fresh look.
After markets closed Wednesday, Kraton reported first-quarter earnings of $0.27 per share on revenue of $427.3 million, easily surpassing consensus estimates for $0.04 per share in earnings on sales of $409 million. Revenue was down 6.4% year over year and EBITDA was off by 12.9%, but the markets had feared results would come in much worse.
The industrial company issued a statement saying the results were aided by its "geographic and end-market diversification," and that it was able to keep plants up and running and supply chains intact despite the growing COVID-19 pandemic. Kraton saw demand hold up well in a number of end markets, including medical applications such as IV bags and personal-care and hygiene products. The company also saw adhesive-sales growth, driven by tapes and labels for packaging applications and the adhesives used to manufacturer medical gowns and masks.
Source Fool.com
